Stock on Demand This Week: Warner Bros. Discovery Inc (WBD)

Warner Bros. Discovery Inc (NASDAQ:WBD) saw a downside of -3.96% to close Monday at $10.66 after subtracting -$0.44 on the day. The 5-day average trading volume is 16,819,301 shares of the company’s common stock. It has gained $11.93 in the past week and touched a new high 3 times within the past 5 days. An average of 21,933,234 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 19,088,428.

WBD’s 1-month performance is -16.06% or -$1.61 on its low of $10.62 reached on 09/25/23. The company’s shares have touched a 52-week low of $8.82 and high of $16.34, with the stock’s rally to the 52-week high happening on 02/27/23. YTD, WBD has achieved 12.45% or $1.18 and has reached a new high 17 times. However, the current price is down -34.76% from the 52-week high price.

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Valuation Metrics

WBD stock has a beta of 1.54. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.62 while the price-to-book (PB) in the most recent quarter is 0.57, with the price to cash flow ratio at 8.43.

Warner Bros. Discovery Inc’s quick ratio for the period ended June 29 was 0.81, with the current ratio over the same period at 0.81. As well, the company’s long term debt to equity for the quarter ending June 29 was 0.97, while the total debt to equity was 1.04. In terms of profitability, the gross margin trailing 12 months is 18.19%. The trailing 12-month EBITDA margin is 14.39% while for the period ending June 29, Warner Bros. Discovery Inc’s operating margin was -5.10%. The firm’s gross profit as reported stood at $13.38 billion against revenue of $33.82 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income shrunk -175.65% to -$1.24 billion, while revenue of -$1.07 billion was 13.79% off the previous quarter. Analysts expected WBD to announce -$0.38 per share in earnings in its latest quarter, but it posted -$0.51, representing a -34.20% surprise. EBITDA for the quarter stood at more than $5.65 billion. WBD stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 82.14 billion, with total debt at $47.29 billion. Shareholders hold equity totaling $2.44 billion.

Let’s look briefly at Warner Bros. Discovery Inc (WBD) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 25 September was 25.67% to suggest the stock is trending oversold, with historical volatility in this time period at 32.25%.

The stock’s 5-day moving average is $11.28, reflecting a -8.58% or -$1.00 change from its current price. WBD is currently trading -13.12% above its 20-day SMA, -16.00% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -14.03% and SMA200 by+0.47%.

Stochastic %K and %D was 18.33% and 25.13% and the average true range (ATR) pointed at 0.49. The RSI (14) points at 31.45%, while the 14-day stochastic is at 2.56% with the period’s ATR at 0.50. The stock’s 9-day MACD Oscillator is pointing at -0.36 and -0.32 on the 14-day charts.